05 November 2007
Underutilized resource deserves gov’t attention
By Ephraim Aguilar and Niña Catherine Calleja
Tiwi, Albay
A HUGE amount of steam generated from the geothermal operations in this town, northeast of Legazpi City, is not being maximized by the government, said Arthur Baria, asset affairs supervisor of Chevron Geothermal Philippines Holdings Inc.
Baria said geothermal energy has great potential in solving the power crisis now gripping the country since it is less expensive than coal and bunker.
The Chevron executive cited an earlier report on the shortfall in the supply of water—a resource also used to generate power—due to lack of rains. This lack had led to the reduction of water supplied to Metro Manila and neighboring provinces.
He said the dry spell in Luzon should prompt authorities to immediately focus on other energy resources, particularly, geothermal.
Unlike other energy resources, geothermal presents no logistical concerns, like transportation, Baria said.
And when the government taps geothermal energy, it can expect to save as much as $5 billion in foreign exchange, he added.
Underused
“In Tiwi, only 60 megawatts out of the 150 megawatts produced by the geothermal plant were being used by NPC during off-peak hours, and 100 percent on peak hours,” said Baria.
He added that they had been urging the government to consider geothermal as a primary source of energy, and maximize its use in the country.
On the average, only 8 percent of the energy used by the country comes from geothermal; 15 percent from water; and 22 percent from natural gases.
Fossil fuel accounted for the bulk of 55 percent.
Supplying 20 percent of power in the Luzon grid, geothermal operations in Tiwi marked a first in the country. Tiwi has become one of the largest producers of geothermal power in the world.
Service provider
Chevron operates the Tiwi geothermal facilities on a 1,800-hectare property. The American company is a service provider to the government-owned National Power Corp. (NPC).
Chevron supplies steam generated by underground heat to the NPC, which converts it to electricity.
The American firm manages two out of seven geothermal plants in the country.
Advantages
Despite a huge capacity in generating clean, renewable, and affordable energy, geothermal plants could not be considered the main sources of power in the country, Baria said.
As of 2004, geothermal comprises only 8 percent of the country’s power mix.
Chevron maintains that geothermal is the cleanest energy form after hydroelectric.
It is also environment-friendly since it does not use nonrenewable fossil fuels that produce harmful emissions.
And, unlike coal, oil, and methane, geothermal energy emits around 80 percent less greenhouse gases, such as sulfur dioxide and carbon dioxide.
Challenges
According to the Department of Energy, technical constraints and the lack of private sector investments are hampering geothermal projects in the country.
“The development of promising geothermal areas had been temporarily set aside pending technological breakthroughs in handling acidic wells,” the DOE stated in its website.
The passage of laws on environment preservation, such as the “National Integrated Protected Areas System Act,” and empowerment of cultural minorities, like the “Indigenous People’s Rights Act of 1997,” also posed constraints, the website added.
The DOE said the laws affect geothermal ventures, which entail additional costs.
Exploration of the geothermal area in Tiwi started in 1972. A year after, the Naglagbong well was discovered. At present, there are 39 production wells and 21 injection wells at the site.
Tiwi geothermal, which started commercial operations in Jan. 11, 1979, has an installed capacity of 289 megawatts and available capacity of 234 megawatts as of July 2007.
Its cumulative gross generation as of December 2005 was 40,166 gigawatt-hours.
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